Regulators in South Korea are investigating OTC Crypto transactions over concerns about its increased use for criminal activities.
According to a report in a local newspaper, Deputy Directors Ki No-Seong and Park Min-woo of the Financial Services Commission (FSC) and other officials attended the meeting on “Legal Issues Related to related to Virtual Assets” with content focusing on the cryptocurrency OTC market. During this meeting, Deputy Director Ki No-Seong called for regulating the cryptocurrency OTC market due to concerns about money laundering.
The expression “OTC cryptocurrency market” describes exchanges that are not officially recognized by the government. OTC trading includes all trading outside of regulated exchanges, including peer-to-peer (P2P) trading. According to the report, there are a total of 172 cryptocurrencies available on Upbit, the largest cryptocurrency platform in Korea, while the OTC platforms offer up to 700 cryptocurrencies.
The report also mentioned several cases of using OTC platforms to convert virtual assets into won. The International Criminal Investigation Division of the Incheon District Prosecutor's Office arrested and indicted three people for engaging in illegal foreign currency exchange transactions from October 2021 to October 2022.
According to the report, the three detainees purchased a total of 70.9 million USD (94 billion won) of cryptocurrency via OTC method abroad at the request of the Libyans and then sent it back to Korea to convert into currency. face.
South Korea is famous for its strict cryptocurrency regulations and has adopted many measures to deal with criminal activities related to cryptocurrencies. The country's regulators have increased their actions in managing this asset class following the collapse of Terra-Luna.
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